Retirement planning is one of the best planning for your old age. It will provide relief to the people who work tirelessly in their youth and want to live a peaceful life in Old age. If you want to live peacefully after retirement you have to start doing financial planning early for your old age.
When you will become sixty years of age you will no longer be earning that time. So you have to start maintaining a financial backup for that time early in your life. The early you will start the more benefits you can have after retirement.
Read More : Tips to get rid of Body odour naturally
What will be the exact requirement of fund
If we look at the present scenario of health services and life expectancy people can live 100 years if they choose active lifestyle. So if you are doing retirement planning plan your corpus fund according to your life expectancy. You can make your financial planning so that it will cover all your expenses and stay longer than expected by you.
Make Analysis of inflation in Coming Years
When you are doing financial planning for your retirement you should consider the inflation factor in the coming years. You should consider the healthcare expense in your mind as when age increases the health expenses rises according to your increasing age. So if you consider that today expenses are low it may be rise in future. It will get doubled in coming 20 years and more than triple in next 30 years and 5 times after 40 years from now. So you have to plan a corpus fund according to that rising prices.
Regular check on the interest rates
Interest rates have been falling considerably now the fixed deposits are no more interesting. Earlier banks wer offering higher rate of interest but now interest rates are falling and there is also tax deduction on interest rates if it crosses certain limit. You have to make investment so that you can easily have income in the coming future and live your life in luxury.
Plan Early and Reap more benefits
If you want to make a huge corpus fund as retirement fund so you have to start early in your life. The longer the duration the higher will be the accumulated wealth. So if you want to reap the benefits you have to invest early so that you can get benefit from the power of computing.
If you will start late you have to invest a higher amount to create a desired corpus fund at your retirement. A little delay will require a huge amount as monthly investment to create desired corpus fund. So if you want to enjoy more benefits start early investing in your life.
Make your dream house early
Plan your dream house early in your life when you will get retired it is a security of your well living. Moreover it will give you rental income and long term capital gains. Try to buy your own house on loan as it will provide you tax benefits and try to finish the loans before retirement so that you can live worry free.
Private healthcare is too much costly today and it will be skyrocketing in the near future and if you are facing any medical emergency it will be impossible for a middle class family to handle that health emergency. So make investment in health insurance. It will provide great financial assistance against health or medical emergency as it will cover all the pre and post hospitalization expenses , cost of treatment and other medical expenses. Cover all the family members under one health insurance plan as it will provide medical coverage for the whole family.
Buy life insurance for you is must now a days as if you are the only earning member of your family. Those who want to give support to their family in their absence as life is unpredictable we should be prepare for any mishappening. Life insurance is a must. You can also enjoy tax benefits under section 80 D for health insurance under income tax act.